Solana Price News: SOL Bounces Off $175 Again – Can It Stay Afloat?

Solana (SOL) has gone down by 8.3% in the past 24 hours, but buyers showed up to scoop up some tokens as they dropped to $175.

Trading volumes have increased by 25% in the past 24 hours, currently accounting for 12% of the token’s circulating market cap at $11 billion.

Whenever volumes exceed $10 billion for SOL, the market pays attention, as it means that the token has touched an area of interest for both buyers and sellers.

Today’s crypto riot is affecting almost all tokens across the market, and has plummeted the combined valuation of the top 100 cryptos by 7% as per data from CoinMarketCap.

Market Sentiment Sours Amid Trump’s Tariff Increase

Sentiment readings have dropped dramatically once again, exactly a week after President Donald Trump imposed a 100% tariff on Chinese imported goods on top of the increase in levies he had already announced months ago.

Crypto’s Fear and Greed Index has plummeted to 28, meaning that investors are panicking over this drop. This is the lowest reading since April, when the market started to recover from this year’s initial bear market.

Crypto’s Fear and Greed Index – Source: CoinMarketCap

Counterintuitively, whenever market sentiment sours to these levels, it tends to attract significant buying interest as ‘smart money’ tends to enter the scene when “blood is in the streets.”

Moreover, Trump’s decision to slap China with higher tariffs has also derailed the beginning of altcoin season. At some point in September, the combined value of ‘alts’ reached $1.72 trillion. At the time of writing, this metric has plummeted by 15% to $1.42 trillion and is now into “Bitcoin season” territory based on CoinMarketCap’s Altcoin Season Index’s readings.

This is not good news for Solana as it means that investors are rotating capital out of altcoins and into Bitcoin as part of the normal “flight-to-quality” move that happens when the market tanks.

Solana Bounces Off Key Support

The daily chart shows that buyers have backstopped the decline at $175 today. This has been a key area of support and resistance multiple times in the past, which emphasizes its technical relevance and increases the odds of a bounce.

SOL/USD Daily Chart (Coinbase) – Source: TradingView

This area is also near the 200-day exponential moving average (EMA), increasing the odds of a bear trap if buying pressure accelerates.

Is SOL recovers to $200 during the weekend, this would favor a bullish outlook as the market would have confirmed that there’s a floor at this critical level of $175, meaning that investors will not be willing to sell their tokens for any less than that.

If that’s the case, the token could climb to $250 in no time. Solana’s ETF shows resilience as its assets under management have stood near the $400 million mark despite this past week’s selling spree.

Similarly, Ethereum ETFs experienced a mild $57 million net outflow yesterday. Overall, vehicles linked to ETH have taken a net outflow of $80 million, which is next to nothing considering the steep decline that the token has faced lately.

In contrast, if the selling picks up steam later today and throughout the weekend, we could see SOL dropping sharply to the low 150s, meaning a downside potential of 17% in the near term.